Buying Groups

About 27 years ago our store joined a buying group in Northern California called United.  Since then we have been merged and bumped around to a group called Brand Source.  Brand Source is the largest buying group in the nation and the first to do any National advertising with a spokesman and the whole franchise concept.  Brand Source is not a franchise but a group of independent dealers who banded together across the nation to compete with the national chains.

27 years ago, when some of the independent stores were struggling with the competition from the big chains, Sears, Wards, White Front, Circuit City, etc., they banded together to make large purchases and split them among the partners.  As the partners grew the deals got better, in fact the dealers did not have to make one big buy but make buys on selected merchandise at a reduced cost to compete with the chains.  Brand Source grew out of this type of concept.  As the big retailers have fallen one by one and the supposedly new Superstores are inciting the manufacturers with fictional sales volume, the Brand Source dealers are becoming stronger.  As independents, we are able to be more flexible, have better sales people, adapt to changing buying habits quickly, and offer superior service at the same prices.  

At University Electric Home Appliance Center, we have uniquely positioned ourselves as one of the largest retailers in the country.  Our single store outlet has hired competent salespeople to explain the features and benefits of over 60 different brands of appliances.  Our staff is constantly being trained on the newest products and are enlightened on future productions.  Because of our volume and being a Brand Source dealer we have established ourselves in extremely high regard with the builder and retail business in Northern California.  Our volume has put us in a very good buying position with the manufacturers and distributors to provide the BEST pricing to our customers.  All of this happened when 20 years ago Bud Heintz, his sales staff of 2, and his 2 sons decided to break out of the mom and pop status (we had about 7 employees) and take a risk with the buying group idea.  Unfortunately, many other family owned business failed, as they did not take the risk. Many good business people who we were in competition with did not see the change in having to compete with the superstore concept.  Our community appliance store has branched out to service a 100-mile radius in California with trucks delivering to San Francisco one day and to Monterey the next. Our store now employs over 30 people with 15 in sales, 4 clerical, 8 warehouse and 3 in administration as well as a few part time in delivery and clerical.

As Circuit City has fallen out of the appliance business, and Best Buy, Frys and Home Depot, soon to follow, the Brand Source appliance stores will continue to thrive with their ability to make the right purchases at the right time to compete head on with the national chains.